The address:16 Donore Avenue, Dublin 8.
The property:a two-bed terraced house asking €399,000 in walk-in condition.
The agent:Sherry FitzGerald.
The landscape:off Cork Street and around the corner from The Coombe Hospital, number 16 is in the heart of Dublin 8. The city centre and James's Hospital are in striking distance.
The features:laid out over 64sq m (689sq ft) this D8 house has been given a swanky revamp with heritage colours on the walls, refurbished timber floors and some dramatic wallpaper. A smart remodelling of the house connecting the kitchen, livingroom and dining area maximises available space. Upstairs there are two bedrooms and a bathroom. To the rear there is a paved city garden.
How much for an owner-occupier?A first-time buyer borrowing up to 92 per cent would require a salary of €68,000 to fund this mortgage over 35 years. Two individuals would require minimum incomes of around €31,000 each. At AIB's one-year fixed rate of 2.99 per cent (APR 3.28 per cent) the repayments on this mortgage would be around €1,410 per month.
Repayments at the bank’s standard variable rate of 3.25 per cent (APR 3.29 per cent) would be around €1,461 per month.
How much for an investor?The maximum loan considered for an investment property is 85 per cent of the value, with up to 100 per cent loan-to-value considered for portfolio investors, subject to overall loan-to-value of the portfolio not exceeding 75 per cent, according to AIB. The maximum term is 25 years for investors.
On AIB’s buy-to-let two-year fixed rate of 4 per cent (APR 4.45 per cent), the repayments would be around €1,787 per month. On an interest-only loan the monthly repayments would be €1,258 per month (based on a variable rate of 4.45 per cent, APR 4.53 per cent).
Potential?Rent for this house would be in the region of €1,200-€1,300 a month.
Verdict?Investors on an interest-only loan would come close to covering their mortgage repayments with rental income. The only question is whether the banks will provide the finance. The fact that the house is in walk-in condition may suit cash-rich investors looking for a turn-key investment.
Calculations by AIB
– Fiona Tyrrell
